Hi all,
Hows the housing market in Canada?
How much on average does property increase per year?
When i look at real estate web sites they mention taxes, does the same as UK council tax?

Jason

Property tax is similar to council tax it is paid to the city council where you live and goes on services such as rec centres, garbage pickup , road maintenance etc

Canada is a massive country and regions vary in increases per year, the 2 most expensive markets are Vancouver and Toronto.
Theres a market trends report here

http://www.remax-oa.com/MediaNewsroom/default.asp

www.mls.ca wil give you prices across teh country though not necessarily increases. we have certainly not matched the UK in terms of price increases (thankfully)

The reason i ask is that house prices have doubled in the last 4 - 7 yrs here. Maybe because too many people too few houses?
Also prices have increased on average 8.9% per yr over the last 40 yrs. Does anyone have any stats for Canada?
I live in the southeast where with london have had the largest increases, but this has had a knock on effect for the rest of the country. Is this the same in Canada?

Jason

No. There is no comparison between the current Canadian house market anywhere and the UK market of the last few years, which has been absolutely astonishing. You will find the Canadian market utterly stagnant. And pleasantly affordable.

here you go, use the links http://www.statcan.ca/english/Pgdb/

dean

So if i bought a house for $150,000
How much would it have cost me 2, 5 and 10 years ago?

Jason

that really depends on where you live, the neighbourhood, changes to the neighbourhood, taxes, new homes built, interest rates, demographics, but at a guess
2 years ago $140000
5 years ago $125000
10 years ago $90000/100000.

just using the laws of averaging

I would not attempt to look at the Canadian Housing market, like you would look at the UK Market.

Canadians buy houses to live in and treat them accordingly.

Price variations move on a supply and demand basis but due to the availability of land its desirability which is the main driver. As a result there is no real boom or bust cycle.
Cheap houses are cheap for a reason. Investing in housing in Canada usually takes the form of buying to rent, with the profit coming from the rents not the growth in house value…
Also the Canadian winter makes the ‘country’ property a much less desirable residence. The Highest values are often older “turn of the century� properties in the down-town areas of the bigger cites, with the wealthy spending there surplus on their summer cottage in the country..
And as you get closer to one of the two big cities Toronto or Vancouver the prices in the houses reflect their relative position..

A nice way to look at property in Canada is in about 2-4 years the value will increase enough to off-set you re-sale fees…

The reason i ask is if i decide to apply to live canada, i wouldnt expect to settle there for at least 5yrs. I have roughly 50% equity in my home and although everyone seems to think house values my slow or even the bubble will burst. I still feel that when the time is right for me, my home is my most valuble asset and from the sale i could relocate.
But my friends are saying that i cant guage what i can afford now, and what i may afford in say 5yrs.

Jason

Your friends are right, there are too many economic factors to consider..

Any changes in Dollar to pound ratio

Housing markets in both relevant areas

Both of these will be affected in different ways by both economies

5 years is long time....

The reason house sales are slow in the UK is no young people can afford to get on the ladder and start the "chain" moving!

Given that there is an almost unlimited amount of land in canada to build on, it is only areas such as waterfront property that are intrinsically likely to increase in value due to location alone, and even then not at anything close to the rate property is rising in the UK.

If you have any intention of returning to the UK, try to keep the property there if possible and use the rental income to keep paying the mortgage. If you decide to stay in canada, then you can cash in then. Investigate the tax implications of foreign rental income though.

If you buy now and then decide to sell up in canada in five or more years and go back to the UK, your head will spin at how far property prices have moved on in the UK in that time. I cant afford to go back now even if I wanted too , my house isn't even worth enough for a downpayment in most places in the UK.

Iain

I have looked up the exchange rate for the last 10yrs and on average the rate has been $2.30 / $2.35 to the £.
The worst rate was around $2.15 and i believe only last year i could have got $2.60 to the £.

The job that i do i meet many landlords, i also know some uk estate agents. i have spoke to them before about buyind some flats to rent, it was something i was thinking of doing anyway.
If i was to try and move to canada, like Iain says, i could earn a little income and also have one foot in the uk still. If in 5, 10 years i decide i was never going to return i could then sell up and hopfully i would have made a profit to put towards my pension.

Jason